Valaris initiated with an Equal Weight at Barclays

Barclays analyst Edward Kim initiated coverage of Valaris with an Equal Weight rating and $88 price target. After seven challenging years in the offshore drilling market from 2015-2021, the sector, particularly the deepwater segment, has undergone a major transformation with hundreds of rig retirements and acquisitions among rig contractors resulting in a much smaller, more consolidated rig market than before, the analyst tells investors in a research note. The firm sees mounting evidence of the duration of this offshore cycle and says the group is "no longer uninvestable."